Arati took a credit card when she was well settled in her job and had a healthy bank balance. She took the card because she wanted to avail the offers. She liked how you could earn reward points just for spending as usual. Redeeming the points was another highlight. She was happy with the card and never faced any problems. This was also because Arati was a responsible spender and used her credit card wisely. Would you like to learn to use your credit card in a better way? Here are some tips to help you get the most out of it.
Top ways to use your credit card well
- Look for the rewards: Most credit cards in India offer reward points when you use them. Opt for a credit card that gives you the best rewards at the best rates. Are you a movie buff? Get a card that offers the most credit card reward points for movie ticket purchases. This might help you to use your card efficiently. But you can also earn extra reward points. You can use these to your benefit later on.
- Low interest rates: Your ideal credit card should not charge you a lot of interest. You can avail Equated Monthly Instalments (EMIs) at no extra cost. With the no-cost EMI feature, you can repay your credit card bills without any added interest. Just forget about the 12-14% interest that you are often charged to use the EMI option. So, look for such offers when using your credit card. This may help you bring down your expenses.
- Cash withdrawals and part-payments: Not paying your credit card bill or withdrawing cash using your credit card can turn into a really costly affair. So, make sure to factor in the costs of the ATM withdrawals with the credit card and part-payment options as well. For example, a regular credit card may charge you 3.5% interest every month on your credit card dues. Plus, there’s the case of compounding interest—when you are charged an interest fee on your previous interest fee.
- Added benefits: Always look for extra credit card benefits. For example, some credit cards offer added benefits. You gain access to airport lounges, discounts at partner retail outlets, free movie tickets and more.
- Credit limit to loan: Some credit cards let you take a loan against your credit limit. Always look for such offers when using your credit card. That way, you can get timely support and save money in the process.
- Safety: Finally, you must be cautious when using your credit card. The safety features of the card play an important role. Use a card that allows you to keep a tab on transactions at all times. If your credit card is not secure, your entire bank account becomes unsafe. This can lead to many problems.
Keep the tips mentioned above in mind to use your credit card in a better way. First, be careful when zeroing in on a new credit card. Choose a card that offers the best benefits and the best rates of interest. For example, the SuperCard by RBL Bank and Bajaj Finserv can bring down your expenses considerably and may prove beneficial for you. For example, if you opt for the newly launched Bajaj Finserv-RBL Bank SuperCard>, you can get as much as 12,000 points as a welcome gift. All you have to do is use your SuperCard to pay a specified amount within the first 60 days.